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2014 House Bill 5570: Detroit bankruptcy settlement and grant package - pension details

Public Act 185 of 2014

  1. Introduced by Rep. Ken Yonker (R) on May 8, 2014, to establish a Detroit pension investment committee to oversee management of the city’s defined benefit pension system. The system would still be run by the existing pension board, but a process would be instituted by which the chief financial officer for the city proposed by House Bill 5567 would have final authority in the event the committee and the pension board disagreed on investment management decisions. The bill would also impose additional restrictions and disclosure requirements on reimbursed travel by pension fund board members, officials or employees. This is part of a legislative package consisting of House Bills 5566 to 5575 that are related to the Detroit bankruptcy and a proposed state grant to the city of $195 million.
    • Referred to the House Detroit's Recovery and Michigan's Future Committee on May 8, 2014.
      • Reported in the House on May 21, 2014, with the recommendation that the substitute (H-3) be adopted and that the bill then pass.
    • Substitute offered in the House on May 22, 2014. The substitute passed by voice vote in the House on May 22, 2014.
    • Amendment offered by Rep. Ken Yonker (R) on May 22, 2014, to revise the nomenclature for the post-bankruptcy pension system. The amendment passed by voice vote in the House on May 22, 2014.
    • Amendment offered by Rep. Douglas Geiss (D) on May 22, 2014, to prohibit the Detroit pension system from making further investments in a controversial hazardous waste disposal well in Romulus, and if the pension system ends up owning the financially troubled well, close it rather than sell it. The amendment failed by voice vote in the House on May 22, 2014.
    • Amendment offered in the House on May 22, 2014, to require Detroit pension fund "investment fiduciaries" to submit reports to the financial oversight panes created by House Bill 5566. The amendment passed by voice vote in the House on May 22, 2014.
  2. Passed 105 to 5 in the House on May 22, 2014.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on May 27, 2014.
    • Referred to the Senate Government Operations Committee on May 27, 2014.
      • Reported in the Senate on June 3, 2014, with the recommendation that the bill pass.
  4. Passed 37 to 1 in the Senate on June 3, 2014, to establish a Detroit pension investment committee to oversee management of the city’s defined benefit pension system. The system would still be run by the existing pension board, but a process would be instituted by which the chief financial officer for the city proposed by House Bill 5567 would have final authority in the event the committee and the pension board disagreed on investment management decisions. The bill would also impose additional restrictions and disclosure requirements on reimbursed travel by pension fund board members, officials or employees. This is part of a legislative package consisting of House Bills 5566 to 5575 that are related to the Detroit bankruptcy and a proposed state grant to the city of $195 million.
    Who Voted "Yes" and Who Voted "No"

  5. Signed by Gov. Rick Snyder on June 19, 2014.

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